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Management · Q369

Management Accounting

Graduate and Post Graduate · Management · question 369

Q369

Kind of costs that has been occurred in past are also known as

A.
unrecorded costs
B.
recorded costs
C.
sunk costs
Answer
D.
bunked costs

Answer: Option C

Solution

Answer: Option C
Solution:
Kind of costs that has been occurred in past are also known as sunk costs. A sunk cost is a cost that an entity has incurred, and which it can no longer recover. Sunk costs should not be considered when making the decision to continue investing in an ongoing project, since these costs cannot be recovered.